13% FIIs Stake: Mid Cap Stock Declares Dividend After Gaining 225% From 52W-Low

During Friday's closing session, DB Corp, a mid-cap company in the media industry, had a market worth of Rs 5,375.80 Cr. The largest print media firm in India is D B Corp Ltd. Its core publications include the 1958-founded Hindi-language Dainik Bhaskar, the Gujarati-language Divya Bhaskar and Saurashtra Samachar, and the Marathi-language Divya Marathi. The company has announced its Q2 results and an interim dividend, the specifics of which are covered in a brief below.

DB Corp Dividend

The Board of Directors of the company have declared a second interim dividend of Rs. 2/- per equity share of face value of Rs. 10/- each (i.e. @20% of FV) for FY 2023-24.

For the purpose of ascertaining the eligibility of shareholders for payment of the second interim dividend for F.Y. 2023-24, DB Corp has fixed 7th November 2023 as the record date and on or before 24th November 2023 as the dividend payment date.

DB Corp Q2 Results

On a standalone basis, the company recorded net sales of Rs 586.04 crore in the September 2023 quarter up 8.94% from Rs. 537.93 crore in the September 2022 quarter. The company's net profit jumped by 106.23% to Rs. 100.25 crore in Q2FY24 from Rs. 48.61 crore in Q2FY23. EBITDA jumped by 71.73% to Rs. 167.56 crore in the quarter under review from Rs. 97.57 crore in the same quarter last year.

On a consolidated basis, the company's net sales reached Rs 586.04 crore in the September 2023 quarter which is a rise of 8.85% from Rs. 538.40 crore in the September 2022 quarter. Its consolidated net profit stood at Rs. 100.26 crore in Q2FY24 up 105.53% from Rs. 48.78 crore in Q2FY23. EBITDA reached Rs. 167.57 crore in the quarter under review which is a growth of 71.41% from Rs. 97.76 crore in the corresponding quarter of FY23.

DB Corp Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, "DBCORP is presently trading at Rs 297. The weekly chart indicates the formation of a Rounding bottom breakout pattern, with the price consolidating near a resistance level. If DBCORP manages to close above Rs 320, it is likely to experience further upward movement, with target levels at Rs 325 and Rs 370."

"Key technical indicators support this outlook. DBCORP is currently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, which indicate a bullish trend and suggest the potential for continued upward price movement. The Relative Strength Index (RSI) is currently at 59 and trending upwards, which signals increased buying momentum. These technical indicators collectively suggest that DBCORP has the potential to reach a target price of Rs 370 in the short term," said the analyst.

"To effectively manage risk and protect your investment, it is advisable to implement a stop-loss (SL) at Rs 262. This stop-loss will act as a safety net in case of an unexpected market reversal, ensuring that you can limit potential losses. In summary, considering the technical analysis and the current market conditions, DBCORP seems to present an attractive buying opportunity for those aiming for a Rs 370 price target, provided that you have a prudent risk management strategy in place," said Mandar Bhojane.

DB Corp Shareholding Pattern

During Q2FY24, the company's promoters' shareholding was 71.96%, FIIs stake reached 13.02%, DIIs stake stood at 4.35% and public stake totalled 10.66%. The scrip made a 52-week-high of Rs 325.00 on (20-Oct-2023) and a 52-week-low of Rs 92.75 on (28-Feb-2023), which means that at the current market price of Rs 300.95, the scrip is trading 224.47% above the 1 year low and 7.40% below the recent 1 year high.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.